Pakistan Aims for a $10 Billion Refinery Deal with Saudi Arabia in the Current Year:
Pakistan is actively working towards finalizing a substantial $10 billion deal with Saudi Arabia’s oil company, Aramco, for the construction of a refinery in Hub by the end of 2023. Additionally, the country is seeking approximately $7 billion from Saudi Arabia by offering shares in the Reko Diq project.
To attract Saudi investment, Pakistan has reportedly approved policy incentives under the Greenfield Refinery Policy 2023. The proposal involves Saudi Arabia acquiring shares in the $7 billion Reko Diq project through a feasible transaction model, possibly involving the Saudi Wealth Fund.
As part of its efforts to attract foreign investment, Pakistan plans to lease 85,000 acres of corporate farmland to foreign investors. The Special Investment Facilitation Council (SIFC) is actively working to facilitate investments in crucial sectors such as energy, minerals, agriculture, and information technology (IT). Government-to-government arrangements also explored for various sectors.
The SIFC engaged in exploring government-to-government options for the privatization of state-owned enterprises (SOEs). Notably, the first deal with the UAE’s AD Ports for the Karachi container terminal has concluded, with another deal for the Bulk and General Cargo Terminal in the pipeline. Additionally, the focus is on tech-driven investments to enhance productivity in the country.